Chinese battery giant CATL grew its profits faster in the third quarter, showing the growing strength of China’s electric‑vehicle and energy‑storage markets.
CATL reported a 15 % jump in operating profit to 1.8 billion yuan, up from 1.6 billion yuan a year earlier. The company’s earnings per share also climbed, reflecting higher margins on lithium‑ion battery sales to its key customers, including Tesla, BYD and NIO.
Revenue rose 12 % to 4.3 billion yuan, driven by a surge in demand for new‑energy‑vehicle batteries. Shanghai‑based CATL said that orders from domestic automakers grew as China’s new‑energy‑vehicle policy pushes more cars onto the road. The company also said sales of stationary battery packs for renewable‑energy storage rose significantly as China ramps up solar and wind projects.
CATL added new production lines in Jiangxi province and is expanding its factory footprint overseas. It also announced a new partnership with a European automaker to produce lightweight battery modules tailored for long‑range cars.
In its guidance for the full year, CATL expects third‑quarter operating profit to exceed analysts’ estimates, citing strong demand and improved production efficiency. The company could see its profit margin climb to 20 % by the end of 2025 if battery prices remain stable.
Despite global supply‑chain hiccups, CATL’s chief executive, Zheng Bin, said the company’s cash flow remains robust, with a healthy balance sheet that gives it room to fund R&D and capacity expansion.
Many analysts see this earnings beat as a sign that China’s battery industry is catching up to its peers in Europe and the United States. CATL’s gains underscore the shift toward all‑electric fleets and renewable‑energy storage, hinting that the company could play a central role in future global EV supply chains.
The company’s performance reflects a broader trend: as more automakers commit to zero‑emissions targets, the need for high‑performance batteries will grow. With its proven technology and aggressive expansion, CATL is well positioned to capture a larger share of this booming market.
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